Hiring / recruitment is one of the most important tasks to keep any business running successfully. It can literally make or break the business not matter what stage a business is at…just getting started, scaling rapidly, or reaching maturity.
Without the proper ways to measure recruitment/ hiring effectiveness, it can be very difficult to measure whether your recruitment is working or not.
With the new year, 2025, approaching quickly and your hiring also likely to gear up, it’s important to set Key Progress Indicators (KPIs) related to your recruitment/hiring practices to measure how well your business is doing.
Here are 5 KPIs you can use in this upcoming year to measure how well your organization is recruiting and hiring.
- Time to Hire – the amount of time on average it takes you to hire a new employee from the time you first post your job. Depending on the skill level for certain positions, time to hire comes with a great degree of variability. The way to measure recruitment improvement is if your Time to Hire is decreasing over time.
- Cost/Hire – the amount of money spent on all your recruiting tasks divided by the total number of hires. Similar to Time to Hire, Cost/Hire is improving if you are able to lower the statistic over time.
- Quality of Hire – a measure of how well an employee performs in their new role. Quality of Hire is not as easy to measure as KPIs such as Time to Hire or Cost/Hire but some ways to measure quality include
- Performance reviews
- Hiring manager satisfaction
- Retention rate (i.e. how long they stay with your company)
- Time to become productive (i.e. how long it takes for your new hire to reach full productivity in the company)
- Candidate Sourcing Channel Effectiveness – the success rate of the various recruitment channels being used across your workflows. This KPI requires your organization to track number of hires, retention rate, and Quality of Hire across all the channels you are using. Some very common channels that businesses use nowadays can include
- Niche job boards related to a specific industry
- Public job boards such as LinkedIn, Indeed, and Monster etc
- Professional associations
- Referrals
- and much more!
- Offer Acceptance Rate – the percentage of offers that are accepted for new positions. The formula for offer acceptance rate = (the total # of offers accepted / the total # of offers extended ) * 100. This will give you the KPI expressed as a percentage. The higher this KPI gets over time, the better your organization is doing at attracting talent.
While there are many KPIs that can be used to measure recruitment, these 5 we covered today can be seen as some of the most important ones. Each of these 5 KPI’s will vary depending on the industry your business serves and the roles you are hiring for. Stay tuned on our blog as we plan to write comprehensive content on what the actual metrics for these KPIs should be based on your industry and type of role.
Ready to supercharge your recruitment ? Find out how PURR AI can help improve all your core recruitment KPIs. https://calendly.com/purrai/30min?back=1